Tracking Counts
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      Cycle Counting

      Cycle counting is the process of regularly counting a small portion of inventory rather than counting all products at the end of the fiscal year. A company must maintain an accurate inventory count and value of product listed within the Inventory asset financial accounts. Cycle counting is an efficient method that enhances the accuracy of inventory counts and reduces or eliminates the time required to count all products at the end of the year.

      Review the following steps to adapt the cycle counting method to maintain inventory:

      1. Record when a user has verified the product’s count by completing the following steps. The Last Reconciliation Date should be set each time a user verifies the count of a product.
        1. Verify the product count by using one of the count values within the product record Count tab. Some tips:
          • Have the purchaser review the counts when the amount of product is low and requires product restocking by purchasing additional product. Some purchasing tools that contain counts: Counts are shown in the Inventory Purchasing Page dialog. Count columns can be displayed on the Expenses > Invoices and P.O.s detail lines.
          • Have warehouse staff review counts using the MyInventory app. Review MyInventory and Scanner > Stock Management for steps.
        2. Adjust wrong counts. The Last Reconciliation Date will be set by each adjustment process.
        3. When inventory counts are correct, set the Last Reconciliation Date manually. Set the date by going to the product record Count tab, look for the Last Reconcile section, and set the fields appropriately. Because the reconciliation information is stored in the product record, it is standardized across EBMS and simple to reference.

      2. Identify which product counts needs to be reviewed by selecting Inventory > Adjust Counts from the main EBMS menu to open an Inventory Batch Numbers dialog.
      3. Click on the Prepare For Count button located at the bottom of the Inventory Batch Numbers dialog. Review Adjusting Counts as a Batch for instructions on preparing for inventory counts adjustment and creating a batch.
      4. Select a Warehouse and create a batch.
      5. Tap the Import From Inventory button to list products.

      6. Select the product Category folder.
      7. Set the Net Counted Since date.
      8. Adjust values as described in Review Adjusting Counts as a Batch for instructions on preparing for counts and creating a batch.
      9. Repeat step #1 until the Physical Inventory Worksheet report (step #2) shows zero items, verifying that all products were reconciled within the defined cycle defined by the suppress date. You can find this report by going to File > Reports > Inventory > Counts/Values > Physical Inventory Worksheet.

      Use the following report to show product counts rather than the Inventory > Adjust Counts option.

      Optional report to list product counts that need to be reviewed:

      1. Go to File > Reports > Inventory > Counts/Values > Physical Inventory Worksheet. Use the Physical Inventory Worksheet report within the Warehouse folder if the company uses multiple warehouses (File > Reports > Inventory > Warehouse > Physical Inventory Worksheet by Warehouse).

      2. Select a Category to shorten the product list if necessary. The top-level root Product category should be selected when most products have been reconciled, so that all product counts are verified.
      3. Select an option for the Inventory On Hand Selection:
        1. Non-Zero Only: Select this option to only verify products with an inventory count. Products with no inventory counts will be ignored even if the product may be in stock.
        2. With Year Page History: Select this option to only verify product that has been sold and has transaction history in the year tabs. (This option is recommended if the All list is too large.)
        3. All: Select this option for all on hand inventory. (This option is recommended for smaller catalogs)
      4. Set the Purchase Method to Stocked to ignore all special-order items. Review Special Orders and Drop Shipped Items for information on special order products.
      5. Enable the important Exclude Products Counted On or After option by selecting a date. This date determines the cycle period. Set this date to the beginning of the fiscal year to verify that every product has been reconciled at some point during the current fiscal year. Set the date to the beginning of last month or the beginning of the fiscal quarter to reconcile inventory more frequently. If a product has been counted on or after the established cycle date, that product will not show up in this worksheet.
      6. Generate the report to list products that have not been reconciled. This list should be empty when all products are reconciled.